Labour Force Participation and Unemployment Trends 2025
The Periodic Labour Force Survey (PLFS) data for May and June 2025 reveals key trends in unemployment and labour force participation in India. The unemployment rate stayed constant at 5.6%. However, there was a slight decline in labour force participation, particularly among women. Seasonal factors and socio-economic changes influenced these shifts.
Unemployment Rate Stability
The overall unemployment rate remained at 5.6% for both months. Male unemployment was steady, while female unemployment saw a minor drop of 0.1 percentage points. Rural unemployment decreased by 0.2 points, but urban unemployment rose by 0.2 points. This indicates varying job market dynamics across regions.
Labour Force Participation Rate (LFPR) Decline
- The LFPR for people aged 15 and above dropped from 54.8% in May to 54.2% in June 2025.
- Rural LFPR was higher at 56.1%, compared to 50.4% in urban areas.
- Male LFPR showed a marginal decline in both rural (78.1% from 78.3%) and urban areas (75% from 75.1%).
- Female LFPR decreased more noticeably, from 36.9% to 35.2% in rural areas and from 25.3% to 25% in urban areas.
Women’s Labour Participation Trends
Women’s participation is notably lower than men’s across all regions. The decline is sharper in rural areas, where female LFPR dropped by 1.7 percentage points from May to June. The share of rural female workers in agriculture also fell slightly, from 70.2% to 69.8%. This suggests reduced agricultural engagement possibly linked to lower rural inflation and seasonal work patterns.
Worker Population Ratio (WPR) Changes
The WPR, indicating actual employment, decreased marginally from 39% in May to 38.7% in June 2025. This decline reflects fewer people working relative to the population over 15 years old. Seasonal agricultural cycles, intense summer heat, and a shift of some unpaid helpers to domestic chores are cited as influencing factors.
Survey Methodology
The PLFS monthly data is based on a large sample size. Recently, over 89,000 households were surveyed, covering approximately 380,000 individuals across rural and urban areas. This extensive data collection helps track labour market trends more precisely and frequently.
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